This is the sixth property I have bought for these clients. This investment search was the most challenging due to the affects of COVID-19 on the commercial property market.
My brief was to find a strata or freehold commercial property, with a long term lease and yield of 5+%. We were looking for a good quality building in a high foot traffic area. We also sought a tenant who’s a long term operator of a successful business. It was also desirable, if possible, for the tenant to pay some or all of the outgoings.
We started our search in the prime suburbs of Sydney, where there were plenty of good quality properties for sale. However, all of these properties were offered with vacant possession or had excellent development potential, neither of which suited my clients.
We extended our search to the ACT. The lack of land tax and the deduction for stamp duty in the first year of ownership made investing in this area an attractive proposition. Braddon, for instance, is a 5-minute walk from the Canberra CBD. It’s an area of substantial growth in mixed residential and commercial buildings.
Before long, we found this property listed to Auction. With 5 dedicated car spaces in a new development (completed 2019), it was perfect for our clients. The tenants have operated their businesses for many years and have committed to a 10 year lease with a 10 year option.
We went to Auction for our clients and were the successful purchasers for this fabulous property.
My clients are thrilled with their purchase. As well as being a fantastic investment, they are pleased with their lovely tenants too.
If you’re looking to build your property portfolio, or would like to invest in a commercial asset, get in touch with us today.